Office of tije #regibeat

of the #bilippine$
fla(ata8ang

MALAC&IIWG RECO~DSOFFICE

-la, May 5,2008

HON. EMERLINDA R. ROMAN

President
Univer~ityof the Philippines System
Diliman, Quezon City

Madam :

I have the honor to transmit for your information and guidance, a certified copy of
Republic Act No. 9500 dated April 29, 2008 e~iftled"AN ACT TO STRENGTHEN
THE UNIVERSITY OF THJE PHILIPPINES AS THE NATIONAL
UNIVERSITY ".

Very truly yours,

MAFUANITO M.
Director IV
Malacafhng Records Office

Rm 101, Mabini Hall, MalacaAang, Manila Telefax No. 736-1018,736- 1346,735-6201 loc. 60 16

r.30739
S. No. 1964
11. No. 2845

Begun and held in Metro Manila, on Monday, the twenty-third day of

July, two thousand seven.

[ REPUBLICACTNo. 9 50 0 1
AN ACT TO STRENGTHEN THE UNNERSITY OF THE
PHILIPPINES AS THE NATIONAL LJNIVEWm

Be it enacted by the Senate and House of Represenfatives of

the Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be lrnown as "The

University of the Philippines Charter of 2008."
SEC. 2. Declaration of Policy. - The University of the
Philippines is hereby declared as the national university.

The State shall promote, foster, nurture and protect the

right of all citizens to accessible quality education. Toward
this end, it is the policy of the State to strengthen the
University of the Philippines as the national university.
 SEC. 3. Purpose of the University. - As the national
university, a public and secular institution of higher iearning,
and a community of scholars dedicated to the search for truth
and knowledge a s well as the development of future leaders,
the Unive~sityof the Philippines shall perform its unique and
distinctive leadership i n higher education and development.
The University shall:
. (a) Lezd i n setting academic standards and initistjng
innovations i? teaching, research and faculty development in
philosophy, the arts and humadties, the social sciences, the
professions and engineering, natural sciences, mathematics, and
technology; a n d maintain centers of excellence i n such
disciplines and professions;
(b) Serve as a graduate university by providing advanced
studies and specialization for scholars, scientists, writers,
artists and professionals, especially those who serve on the
faculty of state and private colleges and universities;
(c) Serve a s a research university in various fields of
expertise and specialization by conducting basic and applied
research and development, and promoting research in various
colleges and universities, and contributing to the dissemination
and application of knowledge;
(d) Lead a s a public service university by providing
various forms of community, public, and volunteer service, as
well as scholarly and technical assistance to the government,
t h e private sector, and civil society while maintaining its
standards of excellence;
(e) Protect and promote the professional and economic
rights and welfare of its academic and non-academic personnd;
(f) Provide opportunities for training and learning i n
leadership, responsible citizenship, and the development of
democratic vdues, institutions and practice through academic
a n d non-academic programs, including sports aild t h e
enhancement of nationalism and national identity;
(g) Serve a s a regional a n d global university i n
cooperation with international and scientiGc unions, networks
of universities, scholarly and professional associations i n t h e
Asia-Pacifrc region and around the world; and
(h)Provide democratic governance in the University based
on collegiahiy, representation, accountabilityj transparency and
active participation of its constituents, and promote the balding
*- of fora for students, faculty, research, extension a n d
professional staff (REPS), staff, and alumni t o discuss non-
academic issues affecting the University.
*
SEC. 4. The University System. - The University of
the Philippines is a university system and shall be composed
of constituent universities established solely by its Board of
Regents upon the recommendation of the President of the
University. The University of the Philippines System is
. composed of its existing constituent universities, as follows:
University of the Philippines Diliman; University of t h e
Philippines Ma+!a; University of the Philippines Los Bafios;
University of t h e Philippines Visayas; University of t h e
Philippines Mindanao; University of the Philippines Baguio;
University of the Philippines Open University; and those that
may be created in the future. It is referred to in this law as
the "National Univer~ity."
SEC. 5. Academic Freedom. - The national university
has the right and responsibility to exercise academic fi-eedom.
SEC. 6. Academic Excellence. - The national university
h a s the responsibility to maintain and enhance its high
academic standards in the performance of its functions of
instruction, research and extension, and public service.
SEC. 7. Commitment to National Development. - The
national university shall harness the expertise of the members
of its community and other individuals to regularly study the
state of the nation i n relation to its quest for national
I
development in the primary areas of politics and economics,
among others, identlfy key concerns, formulate responsive
policies regarding these concerns, and give advice a n d
recommendations to Congress and t h e president of t h e
Philippines.
 The Congress of the Republic of the Philippines, the
Supreme Court and other lower courts, other government
agencies and instrumentalities as well as any constitutional
body may request the national university to conduct research
or provide advice on any matter involving public policy. The
budget for such research or request for advice shall come from
the appropriation of these public agencies.
SEC. 8. Social Responsibility. - The national university
is committed to serve the Filipino nation and humanity.
While it carries out the obligation to pursue universal
principles, it must relate its activities to the needs of the
Filipino people and their aspirations for social progress and
transformation. The national university may provide venues
for student volunteerism.
SEC. 9. Democratic Access. - The national university
shall take affirmative steps which may take the form of an
alternative and equitable admissions process to enhance the
access of disadvantaged students, such as indigenous peoples,
poor and deserving students, including but not limited to
valedictorians and salutatorians of public high schools, and
students from depressed areas, to its programs and services.
No student shall be denied admission to the national
university by reason solely of age, gender, nationality, religious
belief, economic status, ethnicity, physical disability, or political
opinion or &ation.
The national university recognizes the separation of
Church and State. It shall guarantee religious freedom and
shall not discriminate on the basis of religion.
SEC. 10. SpoGs. - The national university shaR
undertake and support comprehensive sports programs that
promote physical education, uphold excellence and encourage
competitive participation in sports activities, instill school
identity and solidarity, cultivate pride, self-discipline and
teamwork which serve as a foundation for fostering active
participation in the national university, as well as in nation
building.
SEC. 11. Institutional Autonomy a,s t h e National
University. - To provide greater flexibility, it shall be treated
in a manner consistent with its institutiond requirements as
the national university by the service-wide agencies in the
#
exercise of their respective jurisdiction. T a b g into account
national goals and priorities, it shall exdusively dei%rsnim its
-1 1, ;m,'
.-7 -a" , - teaching, research a n d extension thrusts, plans, p o l i d e ~ ,
8
-.9~ programs and standards, and, on t h e basis of sue%
-. -- determination, the national university shall recommend its
annual budget to the President of the Republic of the
Philippines and Congress.
SEC. 12. m e Board of Regents. -
(1) Composition - The governance of the national
university is vested in a board of regents known as the ''Board
of Regents of the University of the Philippines System,"
hereinafter referred to as the '%oard," composed of:
(a) The Chairperson of the Copmission on Higher
Education as Chairperson;
(b) The President of the University of the Philippines
System as Co-Chairperson;
(c) The Chairperson of the Senate Committee on
Education, Arts and Culture;
(d) The Charperson of the House Committee on Higher
and Technical Education;
(e) The President of the U.P. Alumni Association, t o
serve as Alumni Regent during his or her incumbency in that
position;
(0 One Faculty Regent representing all teaching
personnel, chosen i n accordance w i t h t h e r u l e s and
qu&cation set by the constituent university councils to.serve
for a term of two (2) years;
(g) One Student Regent, t o serve for a term of one (1)
year, chosen by the students from their ranks in accordance
with rules and qualifications approved in a referendum by the
students; - -- - appoint representatives to a d on their behalf: Provided, That
(h) One Staff Regent representing t h e full-time
permanent research, extension, and professional staff (REPS)
and administrative personnel, and chosen by them &om their
ranks in accordance with the rules and qualifications set by
their duly recognized organizations, to serve for a term of two
(2) years; and
(i) Three other Regents who have distinguished
themselves in their professions or fields of specialization, to
be appointed by the President of the Philippines, considering
the recommendation of the Board. At least two (2) of these
Regents should be alumni. All these Regents shall each serve
for a term of two (2) yeam Prouid.ed, That the Regents holding
office as members of the Board a t the time of the effectivity
of this Act shall continue to serve until the expiration of their
appointments as provided in Executive Order No. 204-A, issued
by the President of the Philippines on July 15, 1987.
(2) Vacancy - I n case of vacancy in the Board, except
for the President of the University, such vacancy shall be filled
in the same manner as provided for the predecessor, and such
appointee shall hold office for the unexpired portion of the
term. In case of a sectoral Regent, membership in the Board
ceases upon suspension, separation, or recall.
(3) Compensation - Members of the Board shall serve
without compensation other than reimbursement for actual and
necessary expenses incurred in attendance to meetings of the
Board or other official business authorized by the Board.
(4) Meetings;-Quorum - The Board shall convede
regularly. The Chairpersons of the Board may call a special
meeting whenever necessary: Provided, That members are
notified in writing at least ten (10) working days prior to the
meeting: Provided, further, That the notice shall contain a
brief description of the agenda items to be discussed.
A majority of all members of the Board holding office at
the time the meeting is called shall constitute a quorum for
Board meetings.
In no case shall any and all members of the Board
the ex-officw members of the Board coming &om Congress may
participate and vote through teleconferencing or equivalent
verifiable means of communication.
SEC. 13. Powers and Duties of the Board of Rigents.
I
- The administration of the national university and the
exercise of its corporate powers are vested in the Board of
Regents.
The Board shall exercise the following spe&c powers and
duties:
(a) To define i n general terms the thrusts of the
national university and adopt broad policy guidelines to ensure
their implementation;
(b) To preserve the integrity of the national university;
(c) To approve the institution, merger or abolition of
academic programs, upon recommendation of the University
Council of the constituent university concerned, through the
President of the University;
(d) To approve the graduation of students and grant of
honors, as recommended by their respective University
Councils through the President of the University;
(e) To confer honorary degrees upon persons i n
recognition of learning, statesmanship, or eminence i n
literature, science, or art, upon recommendation of a committee
created by the President of the University: Provided, That
such degrees shall not be conferred in consideration of any
payment, gift or other valuable consideration;
(f) To approve t h e rules on s t u d e n t discipline
recommended by the University Councils through the President
of the University, with the Board retaining the power to review
and pass final judgment on student disciplinary cases;
 (g) To create, organize,-reorganize, merge or abolish
constituent universities, colleges, institutes, and other academic
and administrative units of the national university;
(h) To establish professorial chair awards;
(i) To provide fellowships, scholarships and grants,
including athletic grants and to award the same to faculty,
staff and students having special evidence of merit, especially
those who are poor and deserving individuals;
(j) To elect the President of the University for a single
term of six (6) years following a process of democratic
consultation with t h e university community based on
standards and guidelines set by the Board. In the event of
a vacancy, the Board shall elect a president who shall serve
a fidl term. A Chancellor chosen by the Board may act as
Officer-in-Charge of the national university when the search
process is in progress. In no case shall the search and election
of the next President be longer than ninety (90) calendar days
from the date when the vacancy occurs;
@) To appoint faculty members and other officials and
employees, to draw up a position classification a n d
compensation plan for its faculty and staff, and, any law to
the contrary notwithstanding, to fix and adjust salaries and
benefits of the faculty members and other employees: Provided,
That salaries and other benefits of the faculty shall be
equivalent to those being received by their counterparts in the
private sedor; to determine the hours of service of faculty and
staff, and such other terms and conditions of employment as
it may deem proper; to grant leave of absence under such
regulations as it may promulgate, any other provisions of l a y
to the contrary notwithstanding; and to remove them for cause
as provided by law after due investigation and proper hearing;
O To extend, with their consent, the tenure of faculty
members of the national university beyond the compulsory
retirement age, any other provision of law to the contrary
notwithstanding, on recommendation of the units upon
endorsement of the President of the national university,
whenever their services are especially needed: Provided,
however, That no extension of tenure shall be made beyond
the age of seventy (70);
(m) To fu; the tuition fees and other necessary school
charges, as the Board may deem proper to impose, &r due
and comprehensive consultation with the students w n m d .
Such fees and charges, including governmekt support arid
other income generated by the national university, shall
constitute special trust funds and shall be deposited in an
authorized government depository bank. Any and all interest
that shall accrue therefkom shall form part of the same funds
for the use of the national university.
Notwithstanding any provision of law to the contrary, all
incomes generated by the national university or by its
subsidiaries shall, upon their collection, be retained by the
national university and disbursed at the discretion of the Board
for the professional growth and development, health, welfare,
and other benefits of the students, faculty members and other
personnel; for the acquisition, construction, maintenance and
repair of urgently needed instructional and auxiliary facilities,
equipment, buildings and other hfrashudure; and for expenses
necessary for the attainment of its purposes under its approved
program of expenditures.
. If the national university, for reasons beyond its control,
shall not be able to pursue any project for which funds have
been appropriated and allocated under its approved program
of expenditures, the Board may authorize the use of said fund
for any reasonable purpose for which it deems necessary and
urgent for the attainment of the objectives of the national
university: Provided, That funds collected from students for
a specific purpose shall not be reprogrammed to other
expenditures;
(n) To receive and appropriate all sums a s may be
provided by law for the support of the national university t6
the ends specified by law, and all other sums in the manner
i t may, in its discretion, determine to carry out the purposes
and fmctions of the national university;
(0) To authorize the construction, maintenance or repair
of its buddings, machinery, equipment and other facilities, and
the purchase and acquisition of real and personal properties,
including necessary supplies, materials and equipment;
(p) To receive in trust legacies, gifts and donations of
real and personal property of all kinds and to administer and
dispose the same when necessary for the benefit of the national
university and subject to the instructions of the donor, if any;
(q) Notwithstanding any provision of law to the contrary,
to authorize its faculty and staff to travel abroad to study,
deliver papers, attend conferences and disseminate research:
Provided, That the fellowship, scholarship or grant i s
authorized by the Board: Provided, finally, That research and
other activities funded by the national university shall likewise
undertake research in fields or topics that have promising
commercial applications, and that the faculty and staff involved
in said research be allowed to participate in its financial or
economic benefits;
(r) To exercise the general powers set out i n the
Corporation Code;
(s) To delegate any of its powers to the President of the
University or other officials or officers a s i t may deem
necessary;
(t) To prescribe rules for its own government and the
discipline of the faculty and other personnel and to enact for
the government of the national university such general policies,
rules and regulations, not contrary to law, as are consistent
with its purposes; and
(u) To exercise such powers a s may be proper an:
necessary to carry s u t the objectives of this Act.
SEC. 14. The President of the University. - The
President of the University is the chief academic officer, head
of the university faculty and the chief executive officer of the
University. The President of the University shall exercise the
powers specifically provided for in this Act, those determined
by the Board, those which pertain to the office of the president
of a university, and those which are related or necessary to
its functions. The Board shall determine the compensation
of the President of the University.
The President of the University s h d be appointed by the
Board and shall serve for a single term of six (6) years.
SEC. 15. The Secretary of the University a d of the
Board of Regents. - There shall be a Secretary of the
University appointed by the Board, who shall also be the
Secretary of the Board, and who shall keep such records, of
the University a s may be designated by the Board.
SEC. 16. 2 7 ~University Council. - There shall be in each
constituent university a University Council consisting of the
Chancellor as Chairperson, and all faculty members in the
constituent university holding the rank of assistant professor
and higher as members.
SEC. 17. Powers o f the University Council. - The
University Council shall be the highest academic body of each
constituent university and shall exercise the following powers:
(a) Fix the requirements for admission to any college or
unit, graduation, and the grant of honors subject t o the
minimum system-wide requirements;
(b) Prescribe the academic programs including their
institution, revision, abolition and merger, subject to the
approval of the Board;
(c) Recommend to the Board the graduation of students
and the grant of honors;
(d) Exercise disciplinary power over the students,
through the Chancellors or their appropriate committees,
subject to review by the President of the University according
to the limits prescribed by system-wide rules on student
discipline;
i (e) Undertake the periodic review of academic courses,
programs, standards, thrusts and policies; and
f
(f) Adopt internal rules of procedure consistent with the
provisions of this Act.
 SEC. 18. The Chancellor of the Constituent University.
- The Administration of each constituent university is vested
in the Chancellor insofar as authorized by the Board and the
President of the University. The Chancellor of the constituent
university shall be elected by the Board upon nomination of
the President of the University, following a process of
consultation with the constituents of the constituent university
based on standards and guidelines set by the Board. The
Chancellor shall report to the President of the University, and
shall perform the duties and fundions elsewhere stated in this
Act, and all the usual, necessary and related functions of the
Office of the Chancellor, subject to the policies and rules
prescribed by the Board. The Board shall determine the term
and compensation of the Chancellor. If a Chancellor fails to
complete hisher term, the President shall appoint a n acting
Chancellor while a search process is in progress. I n no case
shall the search and election of the next Chancellor be longer
than slxty (60) calendar days from the date when the vacancy
occms.
SEC. 19. The Faculty. - The teaching staff of each
college shall constitute its faculty. The College Faculty shall
be presided over by a Dean. The Dean shall be elected by
the Board upon nomination of the President of the University
and recommendation of the Chancellor of the constituent
university, following a process of consultation with the
constituents of the college based on standards and guidehes
set by the Board.
If a Dean fails to complete hisher term, the Chancellor
shall appoint an acting Dean while a search process is in
progress. I n no case shall the search and election of the next
Dean be longer than sixty (60) calendar days from the date
when the vacancy sccurs. B University. -
SEC. 20. Appointment Requisites a n d Practice o f
Profession. - Faculty members, as well as research, extension
and professional staff (REPS) of the national university, shall
be exempt as such from any civil service examinatioxl or
regulation as a requisite to appointment. The provisions of
existing law to the contrary notwithstanding, licensing
requirements for professional regulatory boards shall not affect
appointments t o faculty positions. In the appointment of
faculty members, no religious test shall be applied, nor shall
the religious or political opinions or &fiations of the faculty
members of the national university be made subject of
examination or inquiry.
SEC. 21. S t u d e n t A f f a i r s . - (a) There shall be
established in the national university the following student
councils: for every college and degree-granting institute, a
college or institute student council; and for every constituent
university, a university student council; and for the University
System, a general assembly of all student councils.
The student council shall be composed of elected students
of a definite academic unit of the national university. Each
member of the student council shall serve for a term of one
(1) year, without prejudice to reelection.
The student council shall serve as the primary student
body that shall advance the interests, welfare, and aspirations
of the students of the national university. I t shall have the
power to adopt internal rules of procedure consistent with the
provisions of this Act.
(b) Subject to due and comprehensive consultation with
the students, there shall be a student publication established
in every constituent unit and college to be funded by student
fees. Freedom of expression and autonomy in all matters of
editorial and fiscal policy shall be guaranteed especially in the
selection of its editors and staff.
SEC. 22. Land Grants and Other Real Properties of the
(a) The State shall support the University of the
Philippines System a s the national university in the form of
lump sum amount, through general appropriations and other
financial benefits, and i n kind, through land grants and
donations and use of other real properties. To carry out the
intent of these grants, income derived from the development
of all land grants and real properties shall be used to Eurtber
the ends of the national university, as may be decided by the
Boal-u-d;
(b) Such parcels of land ceded by law, decree or
presidential issuance to the University of the Philippines are
hereby declared to be reserved for the purposes intended. The
absolute ownership of the national university over these
landholdings, including those covered by original and transfer
certificates of title in the name of the University of the
Philippines and their future derivatives, is hereby confirmed.
Where the issuance of proper certificates of title is yet pen&
for these landholdings, the appropriate government office shall
expedite the issuance thereof within six months from the date
of effectivity of this Act: Provided, That all registration
requirements necessary for the issuance of the said titles have
been submitted and complied with;
(c) The Board may plan, design, approve andlor cause
the implementation of land leases: Provided, That such
mechanisms and arrangements shall sustain and protect the
environment i n accordance with law, and be exclusive of the
academic core zone of the campuses of the University of the
Philippines: Provided, further, That such mechanisms and
arrangements shall not conflict with the academic mission of
the national university;
(d) The Board may allow the use of the income coming
fiom real properties of the national university as security for
transactions to generate additional revenues when needed for
educational purposes;
(e) The Board may approve the implementation of joint
ventures: Provided, That in the event real-properties of the
national university,are involved, only the income derived By
the University from the use of the real properties shall be the
subject of its participation or obligation in the joint ventures:
Provided, further, That no joint venture shall result in the
alienation of the real properties of the national university; and
(0 Any plan t o generate revenues and other sources
from land grants and other real properties entrusted t o the
national university shall be consistent with the academic
mission and orientation of the national university as well a s
protect it from undue influence and control of commercial
interests: Provided, That such programs, projects o r
mechanisms shall be approved by the Board subject t o a
transparent and democratic process of consultatim with the
constituents of the national university: Provided, furthr, That
funds generated from such programs, projects or mechanisms
shall not be meant to replace, in part or in whole, the annual
appropriations provided by the national government to the
national university.
SEC. 23. Safeguards o n Assets Disposition. - The
preservation of the value of the assets of the national
university shall be of primordial consideration.
The sale of any existing real property of the national
university shall be prohibited: Provided, That the Board may
alienate real property donated after the effectivity of this Act
if the terms of the donation specifically allow it.
Notwithstanding the provision of this Act or any other
law to the contrary, the lease of more than five (5) years of
the assets of the national university and any transaction
referred to in Section 22 shall be subject to the following
conditions and procedures:
(a) The transactions shall be discussed with t h e
members of the Board, in any of its formally convened regular
or special meeting, a t least one (1) month before a decision
is to be made;
(b) The transactions shall be based on a multi-year
comprehensive development plan, crafted and developed by
. qualified urban planning professionals having at least five (5)
y e a r s experience, with prior consultations with a n d
concurrence of third-party experts and duly approved by a
majority vote of all the members of the Board;
(c) The transactions shall be subject to competitive and
public bidding as provided under Republic Act No. 9184,
otherwise known a s the "Government Procurement Reform
Ad";
 (d) In the case of two (2) failed biddings and negotiated
transactions, if undertaken, the Board, when considering the
approval of any such transaction, shall secure a fairness
opinion report from an independent third-party body. This
body shall have five (5) members, three (3) of which shall be
nominated by the Bankers Association of the Philippines (BAF'),
Investment Houses Association of the Philippines (IHAP),
Trust OfGcers Association of the Philippines, or the Financial
Executive Institute of the Philippines (FINEX). The members
shall be entitled to a reasonable per diem as the Board may
spec*.
The fairness opinion report shall contain a statement
expressing the opinion of the body as to the fairness t o the
national university of the terms of the proposed transaction,
particularly its financial terms. The report shall include, but
not limited to, a review a n d analysis of the proposed
transaction, financial statements, industry information,
economic conditions assumptions using management projections
and the assumptions used therein and a comparison of similar
transactions: Provided, That if the Board differs with the
fairness opinion report they shall justify their decision in
writing and make this available to the community of the
national university.
This provision shall not apply to leases granted to faculty
and staff as part of their benefit and those for academic
purposes; and
(e) If the contract or transaction involves an amount
more than Fifty Million Pesos ~50,000,000.00),it shall be
approved by three-fourths (314) of all the members of the Board:
Provided, That the splitting of contracts, which is by bre*g
up a contract into omaller quantities or amounts or dividiizg
contract implementation into artificial or arbitrary phases or
subcontracts for the purpose of circumventing this provision,
shall not be allowed.
SEC. 24. Managenzent of Funds. - (a) There shall be
a n independent trust committee to be composed of the
President of t h e University, a s Chairperson, one (1)
representative each nominated by the Bankers Association of
the Philippines (BAP), the Investment Houses Association of
the Philippines (IHAP), the Trust Offiwrs Association a! the
Philippines (TOAP) and the Financial Executive Institute of
the Philippines (FIhZX). The members shall be entitled to
a reasonable per diem a s the Board may sp-. (b) The
independent trust committee shall recommend to the Bowd five
(5) universal banks selected on a prudent basis which Qu6L
departments shall manage the corporate m d 0 t h funds
through trust agreements of the national university on a mn-
directed basis: Provided, That any such agreement shall be
for a period of not more than two (2) years. (c) The
independent trust committee shall provide the Board with
direction on appropriate investment objectives and permissible
investments with the view to preserving the value of the funds
while dowing the University to earn a reasonable return
thereon.
SEC. 25. T a x Exemptions. - The provisions of any
general or special law to the contrary notwithstanding:
(a) All revenues and assets of the University of the
P-pines used for educational purposes or in support thereof
shall be exempt from all taxes and duties;
(b) Gifts and donations of real and personal properties
of all kinds shall be exempt from the donor's tax and the same
shall be considered as allowable deductions from the gross
income of the donor, in accordance with the provisions of the
National Internal Revenue Code of 1997, a s amended:
Provided, That the allowable deductions shall be equivalent
to 150 percent of the value of such donation. Valuation of
assistance other than money shall be based on the acquisition
cost of t h e property. Such valuation s h a l l take into
consideration the depreciated value of property in case said
property has been used;
(c) Importation of economic, technical, vocational,
sciensc, philosophical, historical and cultural books, supplies
and materials duly certified by the Board, including scienSc
and educational computer and software equipment, shall be
exempt from customs duties; a
(d) The University shall only pay 0% value-added tax
for all transactions subject to this tax; and
 (e) All academic awards shall be ezempt from taxes. ' SEC. 29. Separability Clause. - S h ~ u l dm y p~@&;51
herein be declared unconstitutional, the same shall not affect
SEC. 26. Reportorial Bequiraments and Auditing of the vahdity of the other provisions of this &.
Acc~unts.- The national university shall submit an annual
report to Congress containing thha financial statements, SEC. 30. R e w l i n g Clause. - Act No. I$?"Q,as a@gs&ed,
statement of asassets and haWtSes, actual pr+x&d income &om and all laws, decrees, errders, d e s , and regulations or c&w
tuition fees and other revenue sources, contracts and issuances or parts incomistent with the proyioions d thi~
h v e ~ t m e n bentered into p w u a n t to Section 22 (c) h e r d m d are hereby r2p4;ale.d or mtodsed accordingly.
programs of expenditure. AU accounts and disbursements of
the national university shaU br: audited-by the Commiesion -
SEC. 31. Effcctir:iQ. Thig Act &alI take effect &en
on Audit. (15) days after its pubLie5~tionin the O f i h l Gazette or in any
newspaper of generfl cir5ulation in the Philippines.
SEC. 27. R u k ~of Construchn. - No statutory or other
issuances shan diminish the p w m , righ*, pridsges and
benefits accorded to the n a t i d tmiver&%y under thie A& m
enjoyed a t present, by it under other issuances not a t h e m h e
modified or repealed under this Act, unless srtbsequent
legislation expressly provides for their repeal, amendment or
modificatim. Any case of doubt in the interpretation of any
of the provisions oS this Charkr shall be resolved in favor of
the academic heedom and fiscal autonomy of the Univessity
of the Philippines.
SEC. 28. Appropriations. - The m o u n t needed to a m y This Act which is a mzwolid&$i@aaf$es&e BiU No. 1964and
out the implementation of this Act shall be charged against ouss Bill No. 23845 w w $nay pawad by the 16,~nate and'the
the lump sum appropdtion d the current Kscal year and other ouse of Represenbtives an M@& 5,20Q8and M m h 4,2008,
internal funds of the n a t i d university. Thereafter, such
lump sum representing $he responsibility of the nakional
government fox t h e continued growth, operatian a n d
maintenance of the national university shall be included in
the annual General Appropriations A& (GAA).
- The nationd.UBjmrsi& may we-unexperzded b h n c e s in Seci-etaly of the Senate
any appropriationfor purposes that the Board determina'k
I n addition to the regular appropriations and increase8
far the university under the armual GAA, a centennial f w d
shall be appropriated in the amount of One Hundred Million
Pesos (P10O,QO0,000.00) per year for a period of five yeam,
w h c h shall likewise be included in the annual GAA.

I/ Presidenr of the Philippines

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